Afp Habitat Sa · BCS:HABITAT
Afp Habitat Sa — Q3 2014 Earnings Presentation
44 slides from Afp Habitat Sa's earnings presentation, October 2014
Slide 1: Company Presentation 3Q-2014 Results
Company Presentation 3Q-2014 Results October 2014
Slide 2: Agenda
Agenda 2014 Highlights Appendix 2
Slide 3: Agenda
Agenda 2014 Highlights Appendix 3
Slide 4: Key Indicators
Key Indicators Monthly Contributors Average Monthly Salary Base Contributors Mkt % Total CLP th 678.852 1.240.287 1.226.745 618.941 23,5% 22,9% Aug-2013 Aug-2014 Aug-2013 Aug-2014 Aug-2013 Aug-2014 TOTAL AUM1 APV AUM1 CAV AUM1 USD bn USD MM USD MM MS % MS % MS% 1592 44 566 1258 480 36 26.2% 26.0% 34
Slide 5: Consolidated Income Statement
Consolidated Income Statement CLP MM sep-14 sep-13 Var 14/13 Var 14/13 % Revenues 104,635 95,939 8,696 9.1% Remuneration and Employee Related Expenses (21,417) (19,172) (2,245) 11.7% Other Operating Expenses (19,606) (18,845) (761) 4.0% Operating Expenses (41,023) (38,017) (3,005) 7.9% Depreciation
Slide 6: Peru Operation Pro-Forma Adjustment
Peru Operation Pro-Forma Adjustment CLP MM Consolidated IS Perú Effect Adjusted IS Adj Var 14/13 Adj Var 14/13% Revenues 104,635 1,900 102,735 6,796 7.1% Remuneration and Employee Related Expenses (21,417) (1,903) (19,514) (342) 1.8% Other Operating Expenses (19,606) (3,305) (16,301) 2,545 -13.5% Op
Slide 7: Revenues Breakdown
Revenues Breakdown CLP MM sep-2014 % sep-2013 % Var 14/13 Var 14/13 % Revenues From Fees (Chile) Mandatory (CCICO) 95,454 93.8% 88,915 94.2% 6,539 7.4% APV 3,124 3.1% 2,683 2.8% 441 16.4% CAV 1,776 1.7% 1,605 1.7% 171 10.6% Pensions 1,354 1.3% 1,203 1.3% 151 12.6% Other Fees 86 0.1% 19 0.0% 67 351.5
Slide 8: Operating Expenses Breakdown
Operating Expenses Breakdown CLP MM sep-2014 % sep-2013 % Var 14/13 Var 14/13 % Administrative Employees Remuneration (11,561) 54.0% (10,758) 56.1% (803) 7.5% Sales Employees Remuneration (4,656) 21.7% (4,415) 23.0% (241) 5.5% Employee Short-Term Benefits (3,334) 15.6% (2,545) 13.3% (789) 31.0% Post
Slide 9: Differentiated Service Offering
Differentiated Service Offering Habitat Móvil 13 Branches opening 22 mobile branches on Saturday Coverage: 186 comunas mornings and 188 localidades New web services for Website chat service voluntary savings Business hours Online Appointment extension in the call Reservation center Friday afternoon
Slide 10: 2014 Consolidated Balance Sheet
2014 Consolidated Balance Sheet CLP MM sep-2014 dic-2013 Var % Cash and Equivalents 38,608 63,159 -38.9% Other Current Assets 3,614 3,459 4.5% Total Current Assets 42,222 66,617 -36.6% Reserve Requirements 251,552 220,867 13.9% Other Non Current Assets 22,267 20,923 6.4% Total Non Current Assets 273
Slide 11: Consolidated Results Evolution
Consolidated Results Evolution Revenues EBITDAR CLP MM CLP MM 140,000 104,635 100,000 66,834 70,000 129,379 64,113 121,301 95,939 100,000 84,225 85,648 120,000 114,486 108,949 79,692 60,000 80,000 71,759 100,000 80,000 50,000 80,000 60,000 60,000 40,000 60,000 30,000 40,000 40,000 40,000 20,000 20,0
Slide 12: AFP Habitat: Return on Investment
AFP Habitat: Return on Investment 1st 2nd 3rd 4th 5th 6th Ac c ount 12 Mont hs (%) 36 Mont hs (%) 60 Mont hs (%) St at ement A B C D E A B C D E A B C D E Aug- 14 21.73 17.55 15.50 12.39 9.06 8.19 6.52 6.43 6.04 5.07 6.98 6.31 6.21 5.88 5.70 Apr- 14 7.97 6.19 6.45 6.72 6.13 1.20 1.35 2.75 3.91 4.74
Slide 13: AFP Habitat: Leader in Return on Investment (Cont'd)
AFP Habitat: Leader in Return on Investment (Cont’d) 1st 2nd 3rd 4th 5th 6th AF P CAPIT AL_Ranking AF P CUPRUM_Ranking AF P MODELO_Ranking Ac c ount s 12 Mont hs (%) 36 Mont hs (%) 60 Mont hs (%) Ac c ount s 12 Mont hs (%) 36 Mont hs (%) 60 Mont hs (%) Ac c ount s 12 Mont hs (%) 36 Mont hs (%) St at
Slide 14: Agenda
Agenda 2014 Highlights Appendix 14
Slide 15: Appendix
Appendix 1. Stock Performance 2. Mandatory Products 3. Voluntary Products 4. AFP Industry Overview 5. AFP Habitat Overview 6. AFPs Operating Cost Structure 7. Operation in Peru 8. Contact with our Customers 9. AFP Habitat Funds Breakdown 10. AFP Habitat Dividend Policy 15
Slide 16: Stock Performance
Stock Performance 1985-2014YTD 2010-2014YTD Price Volume Traded CLP (Base 100, (CLP MM) 1000 31 Dec-2010) October 23rd, 2014: share price of CLP 985,83 900 180 4.000 2013: Habitat entered MSCI LATAM Small Cap Index, reaching historical high 800 160 3.500 share price of CLP 1,010 2010: CChC purchases
Slide 17: Appendix
Appendix 1. Stock Performance 2. Mandatory Products 3. Voluntary Products 4. AFP Industry Overview 5. AFP Habitat Overview 6. AFPs Operating Cost Structure 7. Operation in Peru 8. Contact with our Customers 9. AFP Habitat Funds Breakdown 10. AFP Habitat Dividend Policy 17
Slide 18: Mandatory Products Indicators
Mandatory Products Indicators Affiliates Total Contributors Affiliates (MM) MS MS (%) (%) Total Contributors (MM) MS (%) 10 9,3 9,5 9,7 30% 8,8 9,0 6 30% 9 8,4 8,6 5,2 5,3 5,4 8,0 5,0 8 7,4 7,7 27% 5 26.5% 4,6 4,4 4,8 6,7 7,0 7,1 26.0% 26.2% 4,3 27% 7 6,3 6,4 24.7% 24.5% 24.4% 4,0 25.0% 23.8% 23.9%
Slide 19: Mandatory Products Indicators (Cont'd)
Mandatory Products Indicators (Cont’d) Average Monthly Salary Monthly Salary Base USD UF MM 1300 1200 1100 8.4% 1000 900 800 700 600 500 Habitat Industry Average Monthly Salary 8.4% higher Salary Base has grown at: than industry average, as of Aug-2014 7.8% per year since Aug-04 7.5% per yea
Slide 20: Market Share by Salary Base
Market Share by Salary Base MS (%) Monthly Contributors 30% 27,1% 26,9% 25,9% 25,2% 25% 23,2% 20,3% 20% 17,9% 15% 10% 5% 0% 0 - 200 200 - 400 400 - 650 650 - 850 850 - > 1,000 Total (CLP th) 1,000 Jun-2006 Jun-2007 Jun-2008 Jun-2009 Jun-2010 Jun-2011 Jun-2012 Jun-2013 Jun-2014 AFP Habitat has incr
Slide 21: Affiliates, Contributors & Salary Base
Affiliates, Contributors & Salary Base Contributors & Affiliates Contributors & Salary Base 40% 35% 35% MS (%) Contributors (Avg. LTM Aug-2014) MS (%) Contributors (Avg. LTM Aug-2014) Provida 30% Provida 30% 25% 25% 20% Capital Capital 20% 15% 15% Modelo Cuprum 10% Cuprum 10% Modelo 5% 5% Planvital
Slide 22: Appendix
Appendix 1. Stock Performance 2. Mandatory Products 3. Voluntary Products 4. AFP Industry Overview 5. AFP Habitat Overview 6. AFPs Operating Cost Structure 7. Operation in Peru 8. Contact with our Customers 9. AFP Habitat Funds Breakdown 10. AFP Habitat Dividend Policy 22
Slide 23: Voluntary Products Indicators
Voluntary Products Indicators # of APV Accounts AUM APV # of accounts MS (%) USD th MS (%) 35.3% 35.1% 1,200 25% 5,000 40% 33.3% 4,532 19.2% 19.4% 4,500 30.7% 4,342 30.7% 29.0% 29.2% 35% 1,000 18.9% 969 27.9% 4,090 18.7% 798 898 20% 4,000 28.2% 3,782 3,744 27.4% 30% 16.2% 3,500 25.4% 26.0% 800 14.9%
Slide 24: AFP Habitat: Voluntary Products
AFP Habitat: Voluntary Products CLP MM 1.400.000 1.275.656 1.250.748 1.200.000 1.000.000 800.000 577.315 600.000 490.874 400.000 200.000 32.112 10.911 0 Habitat Capital Cuprum Modelo Planvital Provida Voluntary Products = CAV & APV AUM The regulator as well as industry players are constantly see
Slide 25: Appendix
Appendix 1. Stock Performance 2. Mandatory Products 3. Voluntary Products 4. AFP Industry Overview 5. AFP Habitat Overview 6. AFPs Operating Cost Structure 7. Operation in Peru 8. Contact with our Customers 9. AFP Habitat Funds Breakdown 10. AFP Habitat Dividend Policy 25
Slide 26: AFP Industry Overview
AFP Industry Overview Chilean legislation (Law Decree 3500) established a compulsory individual 1980 capitalization system with privately-managed pension funds (AFP) 1981 New AFP system launched with 12 players 1985 AFPs authorized to invest in corporate stocks 2000 In accordance with regulatory mod
Slide 27: AFP Industry Composition: 1981 – 2013
AFP Industry Composition: 1981 – 2013 1981 1990 1994 1995 1998 2004 2008 2013 (12) (14) (21) (15) (8) (6) (5) (6) HABITAT HABITAT HABITAT HABITAT HABITAT HABITAT HABITAT HABITAT CUPRUM CUPRUM CUPRUM CUPRUM CUPRUM CUPRUM CUPRUM CUPRUM ALAMEDA Since 1981, Habitat is one of UNION UNION UNION only two A
Slide 28: AFPs Product Offering
AFPs Product Offering CCICO (Mandatory Contribution Account) Pensions (RP, Programmed Withdrawals) Compulsory savings = 10% of gross Pension payment alternative whereby salary base1 affiliate maintains pension account with Fees: 0.47%-1.54% of salary base the AFP (Habitat = 1.27%) Fee: 0.95%
Slide 29: Appendix
Appendix 1. Stock Performance 2. Mandatory Products 3. Voluntary Products 4. AFP Industry Overview 5. AFP Habitat Overview 6. AFPs Operating Cost Structure 7. Operation in Peru 8. Contact with our Customers 9. AFP Habitat Funds Breakdown 10. AFP Habitat Dividend Policy 29
Slide 30: Company Overview
Company Overview Snapshot Key Figures AFP Habitat was founded in 1981, by the Market Capitalization: USD 1.7 bn5 Chilean Construction Chamber (Cámara Employees: 1,3901 Chilena de la Construcción, or CChC) 27 branches, 6 service centers, 22 mobile CChC controls AFP Habitat through branches
Slide 31: Revenues from Fees Breakdown
Revenues from Fees Breakdown Sep-11 Sep-14 2.3%1.8%1.6% Sep-11 Sep-14 AFP Industry (exc. Habitat) 94.2% CCICO APV CAV Pensions Other Source: SP. AFPs’ financial statements. 31
Slide 32: Appendix
Appendix 1. Stock Performance 2. Mandatory Products 3. Voluntary Products 4. AFP Industry Overview 5. AFP Habitat Overview 6. AFPs Operating Cost Structure 7. Operation in Peru 8. Contact with our Customers 9. AFP Habitat Funds Breakdown 10. AFP Habitat Dividend Policy 32
Slide 33: Operating Costs Structure
Operating Costs Structure Current Commissions All Commissions =1.27% 110% 130% 120% 02% 100% 110% 90% 100% 80% 48% 90% 70% 80% 01% 60% 70% 01% 26% 60% 50% 01% 01% 01% 40% 23% 50% 01% 26% 01% 02% 20% 40% 02% 24% 30% 09% 10% 73% 01% 15% 23% 30% 20% 40% 15% 20% 00% 28% 25% 24% 32% 30% 14% 29% 10% 18% 1
Slide 34: Appendix
Appendix 1. Stock Performance 2. Mandatory Products 3. Voluntary Products 4. AFP Industry Overview 5. AFP Habitat Overview 6. AFPs Operating Cost Structure 7. Operation in Peru 8. Contact with our Customers 9. AFP Habitat Funds Breakdown 10. AFP Habitat Dividend Policy 34
Slide 35: Operation in Peru
Operation in Peru • AFP Habitat was awarded the first new affiliates auction in Peru to receive all new entrants for a 2-year period (starting June, 2013-ending May, 2015) • Operating for over a year since our Commercial launch on June 1st, 2013 • Total investment of approximately USD 20 MM during t
Slide 36: Appendix
Appendix 1. Stock Performance 2. Mandatory Products 3. Voluntary Products 4. AFP Industry Overview 5. AFP Habitat Overview 6. AFPs Operating Cost Structure 7. Operation in Peru 8. Contact with our Customers 9. AFP Habitat Funds Breakdown 10. AFP Habitat Dividend Policy 36
Slide 37: Contact with our Customers
Contact with our Customers We serviced over 850th customer visits in our branches Branch until September 2014 Offices Nationwide coverage currently includes 27 branches, 6 service centers, 22 mobile branches and 2 stands in malls Up until September 2014, our website visits totaled Internet & 6.3 MM
Slide 38: Contact with our Customers (Cont'd)
Contact with our Customers (Cont’d) This online chat assistance service allowed over 48 Website thousand contacts from Jan-Sept 2014 Chat Up until September 2014 over 1.5 MM transactions were Habi-Express serviced through the self-service Habi-Express machines (Self-Service) 64 self-service machines
Slide 39: Contact with our Customers (Cont'd)
Contact with our Customers (Cont’d) Account In October 2014, over 1.4 MM account statements Statements were sent to our affiliates 49% of these were emailed Social As of September, 2014 we had over 82,114 followers on Facebook and Twitter Networks First AFP to use social networks As of September, 20
Slide 40: Appendix
Appendix 1. Stock Performance 2. Mandatory Products 3. Voluntary Products 4. AFP Industry Overview 5. AFP Habitat Overview 6. AFPs Operating Cost Structure 7. Operation in Peru 8. Contact with our Customers 9. AFP Habitat Funds Breakdown 10. AFP Habitat Dividend Policy 40
Slide 41: AFP Habitat Funds Breakdown
AFP Habitat Funds Breakdown Fund A: USD 6.9 bn Fund B: USD 7.5 bn Fund C: USD 15.8 bn 14% 16% 12% 14% 26% 42% 14% 16% 8% 64% 28% 46% Fund D: USD 6.1 bn E: USD 6.0 bn 14% 4% 14% Total: 12% 26% 16% USD 42.3 bn 68% 46% Int'l Stocks Local FI Int'l FI Local Stocks Source: SP as of Sept-2014. Fx (CLP/USD)
Slide 42: Appendix
Appendix 1. Stock Performance 2. Mandatory Products 3. Voluntary Products 4. AFP Industry Overview 5. AFP Habitat Overview 6. AFPs Operating Cost Structure 7. Operation in Peru 8. Contact with our Customers 9. AFP Habitat Funds Breakdown 10. AFP Habitat Dividend Policy 42
Slide 43: Dividend Policy
Dividend Policy AFP Habitat’s Dividend Policy Distribute a minimum of 90% of “distributable net income” (DNI): o Annual net income, minus the financial gains on the required reserve in the event that it is positive, and minus net reserves purchased in the period Policy of interim dividends: twic
Slide 44: Company Presentation 3Q-2014 Results
Company Presentation 3Q-2014 Results October 2014